The authority will increase its reimbursement to the developer to $250,000 to cover the costs of digging up the soil, replacing it with another material and disposing of it in a special landfill. The authority previously agreed to reimburse the developer $100,000, but the agreement with Enmar LLC allows for the authority to reimburse up to $500,000 for site remediation.

The brownfield authority will get paid back the $250,000 through tax increment financing capture and it still is within the $500,000 it committed to Arcadia, Kisscorni has said. The extra $150,000 will come out of the BRA's site remediation revolving fund.

The authority previously had committed $100,000 for site remediation at the parcel east of downtown, at 701 E. Michigan Ave., before it was discovered the layer of soil on the site could not support the weight of a new building.

Marc Hatton, the city's development manager, estimated at the time a building built there could compress and sink by four inches in six months. An analysis of the clay layer where Arcadia's building would sit has shown it is contaminated.

The site used to house a Consumers Energy building. In 2001, the city paid Fleis & Vandenbrink Engineering Inc. to demolish the foundation and remove debris from the Consumers Energy building.

Arcadia Brewing Co. president and founder Tim Suprise has said construction for the $6.2-million brewery expansion project for the Battle Creek brewery would be pushed back several months because of the soil. He has said he expects the project to be completed in mid-to-late fall 2013 instead of his original completion date of late May 2013.

Emily Monacelli is a local government reporter for MLive/Kalamazoo Gazette. Contact her at emonacel@mlive.com. Follow her on Twitter.